BITCOIN
Every country has their own currencies, which is a form of money.
If you are in USA you have to use USD in order to buy or sell things, Same with Canada, Australia and rest of the countries. Each currency has a governing body which regulates their respective currencies.
bitcoin is also currency just like USD or Rupees but it is global currency. It doesn't belong to any country and Bitcoin (capital B) is the system where these Bitcoins are accepted.
Why Bitcoins were introduced ?
In the era of globalization with rising demand of money exchange along with quick, efficient less cumbersome sytem. Current currency system is becoming very inefficient.
Lets try to understand it with few examples.
Rosy had a dream to travel the world so she decided to quit the full time job and became freelancer. However with huge competition in the market. It was not easy to survive. She was determined and agreed to work on lowest price possible. She needed to deliver the best quality in order to survive and that too in the 1/4 of what she was getting in her full time job. Her heart sank even more further when a good chunk of her payment was taken away by a so called money transfer service. “Fucking cheater, this is not what they had advertised in their charges”, said Rosy and she quit the dream of freelancing.
First time Manisha had a chance to fly out of the country. She did her home work well before leaving. Since the withdrawing money from ATM would cost the hefty amount outside the country hence she decided to carry the cash and she exchanged it at the airport of Combodia. She realized she was so fucked up as soon as she entered the hotel and saw the current currency exchange rate of Cambodia.
Imran runs a small export company in India. His business suffered a huge loss when he could not deliver his shipment on time due to lack of cash. Even though he had the sufficient amount in his bank but due to demonetization of currency by govt gave him a huge panic attack overnight.
(above stories are solely for explanation purpose)
There are thousands of other example which shows we have to rely on banks, third parties, govt and on several other things to exchange our own money.
To address this problem an unknown programmer built an open source program in 2009 which is known as Bitcoin. Lets take a look what Bitcoin really is.
Bitcoin is a worldwide digital payment system. Unlike the banks or other payment wallets it is not owned or dependent on anyone. There is no rule, You don’t have to submit any document or you don’t have to fulfill any criteria to be part of it.
The currency which is used in Bitcoin system is called ‘bitcoin’ (small b). So instead of using USD, Euro, GBP or going through the hessel of converting it your own currency you just have to trade or exchange in bitcoin simple isn’t it ?
Bitcoin is becoming insanely popular and bitcoin is expected to replace every currency in future. Therefore it is called the currency of future.
Bitcoin is virtual currency. So it cut he cost of maintaining, keeping and securing the physical money. Hence it free the cost of transferring or exchanging charges.
It is run by community. So no dictatorship of any govt or body. It is pure premise less, paper less and official staff less payment system. So no unnecessary cost.
Every transaction is carried out by highly sophisticated computer algorithms and it maintained in digital ledger called blockchains. Hence it safe, secure and transparent.
Another reason for its growing popularity is its increasing value. if you had purchased 1 bitcoin in just $1 (Rs. 52) in 2011. Today in Aug 2017, 1 bitcoin is worth $4400(Rs. 2 lakh, 80 thousand).
As far as its legality is concern. There is worldwide debate to legalize it. Japan has already made it legal and RBI along with many other world wide governing bodies are also thinking about it. However it not illegal either so you will not commit any crime if you use bitcoins.
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